First deal, $250K in Chattanooga, TN , what do you all think?
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Chattanooga.
Purchase price: $250,000
Cash invested: $6,500
2 Bed 1 Bath Duplex
Current house hack ($1150/unit) (1 occupied)
When fully rented out will bring in @2300/month at least
VA loan $0 down
Built in 1969, great location near busy road for prospective tenants, foundation great condition.
What made you interested in investing in this type of deal?
In my opinion, great property that was renovated with new flooring and brand new fixtures/appliances. Foundation is in great condition, gives a little value add potential with certain aspects, however main reason for getting this was for cash flow. House equity is an afterthought as I plan to hold this at least 10 years if possible.
A little on the pricey side if you ask me, however with all of the renovations and cosmetic touchups that were added this was pretty turn-key
How did you find this deal and how did you negotiate it?
Rockstar agent helped find this deal, unfortunately had to get it at market price @ 250K due to this property being in fantastic condition compared to other properties in this location.
How did you finance this deal?
VA loan $0 down
How did you add value to the deal?
Still currently attempting to add value as this is my first Real estate investment. Completely re-did the yard with great landscaping and great grass, looks like an emerald gem compared to the properties around it, added shrubs to the front as well to give it more home feel.
Will not do anything significant regarding value-add as I do not want to do the leg work for the rest of the neighborhood.
What was the outcome?
Been owning for a few months now, great tenants on the other side makes my life alot easier. Had a few plumbing issues with the pipes being clogged due to hair clogs from previous owner/tenant, hopefully this doesn't resurface. For now it seems fine will be keeping close eye on it.
Unit I was living in had AC unit go out , so I had to buy a new one and have it installed for $5K. Nothing surprising, but regarding foundation haven't had any issues.
Lessons learned? Challenges?
Plumbing is one that is a pain to deal with, however it doesn't look like anything serious according to the plumber, all PVC throughout , besides some of the hookups are cast-iron leading to the PVC. Providing no one flushes wipes we are all good! :)
definitely learning alot regarding plumbing/foundation and just general maitenance with the property.
This is the nicest residential duplex I've seen and I had to pull the trigger on this one when comparing this to other properties I looked at.
